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Puerto Rico Bankruptcy May Assist Island, U.S. Lawmakers Say

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U.S. representatives said there are benefits to letting Puerto Rico’s agencies seek bankruptcy, though some expressed reservations about losses that would impose on the junk-rated island’s bondholders.

Representative Bob Goodlatte, Republican chairman of the House Judiciary Committee, said Thursday that a bill allowing Puerto Rico’s insolvent agencies access to Chapter 9 proceedings might provide an orderly way to restructure debts. He stopped short of endorsing it, citing the impact on investors.